Memo Tax Increment Documents
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To: Honorable Mayor and Members of the City Council
From: Steven C. Mielke, City Manage~lc
Date: March 17, 1995
Subject: TAX INCREMENT DOCUMENTS
As you are no doubt aware, Mr. Don Roesner has been doing extensive research on the tax
increment financing plans in preparation for the April 4 Council meeting, wherein the Council
will be holding a hearing to decide whether or not to create a new tax increment district on the
Suburban Chevrolet site. Staff is continuing to work on the necessary documents for the
e creation of this TIF district, however, since Mr. Roesner has requested and received copies of
the current drafts of these plans, I felt it appropriate to get copies of the plans to the Council
as well. Please bear in mind that between now and the hearing, these documents may
change somewhat.
Enclosed with this memo are five documents, They include:
0 Reorganization and modification of redevelopment projects and tax increment
financing districts; adopted November 7, 1989
0 Modification of redevelopment project No. 1 and tax increment financing plan
No. 2-6 for tax increment financing district No, 2-6; adopted October, 1992.
0 Modifications to tax increment financing plan for tax increment financing district
No. 1-1 (draft)
0 Modifications to tax increment financing plan for tax increment financing district
No, 2-1 (draft)
0 Modified redevelopment plan for redevelopment project No. 1 and the tax
increment financing plan for tax increment financing district No. 1-2 (draft)
. The first two documents listed above are the base tax increment documents establishing our
current tax increment districts and our redevelopment area. The last three documents listed
above are in relation to the changes we would make to our redevelopment and tax increment
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Honorable Mayor and Members of the City Council
Page 2
" plans, should the Council choose to establish the new tax increment district (1-2) after the
April 4 hearing.
The purpose of these plans and documents is to show in written form the plans and
anticipated expenses within the tax increment districts, The amounts listed for various
projects within the draft plans are estimates by staff which are intended to set up a basic
budget for the districts. These documents, when adopted, give the City the ability to plan for
anticipated increments and to plan toward development of the listed projects. The budget
estimates are typically budgeted on the high side so as to provide the greatest leeway in
planning for projects, but the actual spending will be based upon increments received. Thus,
if there are inadequate increments generated to fulfill the entire budget listed in the financing
plan, the City would only expend that amount which is received in actual TIF revenue,
Because of the current legislation before the legislature, the staff has waffled on whether or
not to proceed with the hearing and whether or not to adopt the new 1-2 district. We are
continuing to monitor the status of the legislation and thus far, we have decided to continue
moving forward with the proposal. But we may reach a point where, because of legislative
changes, this either does not make sense or needs to be modified further so as to be of
benefit to the City,
At the December Worksession the Council indicated an interest in pursuing a new increment
e district on the Suburban Chevrolet site because it would allow us to generate additional
increment, giving us the ability to do more projects within the downtown area. While the
decision to create the district has not been made, staff is preparing the necessary information
for the Council to make that policy decision.
If you have questions about these plans or the public hearing process, please let me know.
Enclosures
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